MIRA INFORM REPORT

Report Date :

30.01.2012

IDENTIFICATION DETAILS

Name :	ARVIND RETAIL LIMITED (w.e.f 09.06.2008)
Formerly Known As :	AAKAR FOUNDATIONWEAR LIMITED
Registered Office :	Arvind Mills Premises, Naroda Road, Ahmedabad – 380025, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.03.2007
Com. Reg. No.:	04-050217
Capital Investment / Paid-up Capital :	Rs. 200.500 Millions
CIN No.: [Company Identification No.]	U18101GJ2007PLC050217
TAN No.: [Tax Deduction & Collection Account No.]	AHMA07047F
PAN No.: [Permanent Account No.]	AAGCA2637Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of retailing apparels.
No. of Employees :	1300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2074000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has incurred some losses in the current year. However, trade relations are reported as fair. Business is active. Payments are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY

Name :	Mr. Ananth Krishnamurthy
Designation :	Assistant Manager
Contact No.:	91-80-41550349
Date :	28.01.2012

LOCATIONS

Registered Office :	Arvind Mills Premises, Naroda Road, Ahmedabad – 380025, Gujarat, India
Tel. No.:	91-79-22208000/22203030
Fax No.:	91-79-30138680/ 22200267
E-Mail :	rv.bhimani@arvind.in ananthkrishnamurthy@arvindbrands.com syed@arvindbrands.com rv.bhimani@arvind.in
Website :	www.arvindmills.com
Corporate Office :	10 Floor, 17 M.G. Road, DU Parc Trinity, Bangalore – 560001, Karnataka, India
Tel. No.:	91-80-41550349
Store :	10-3-78/10, Osaman Plaza, Humayu Nagar, Medhipatnam, Hyderabad, Andhra Pradesh, India
Tel. No.:	91-40-23538566

DIRECTORS

As on 29.09.2011

Name :

Mr. Sanjaybhai Shrenikbhai Lalbhai

Designation :

Director

Address :

Lalbaug, Shahibaug, Ahmedabad – 380004, Gujarat, India

Date of Birth/Age :

10.04.1954

Date of Appointment :

31.10.2009

DIN No.:

00008329

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L17119GJ1931PLC000093	Arvind Limited	Managing director	01-01-10	17-03-79	-	Active	NO
2	L14100GJ1979PLC003439	Amol Dicalite Limited	Director	29-03-82	29-03-82	-	Active	NO
3	U65910GJ1981PTC004521	Animesh Holdings Private Limited	Director	10-07-93	10-07-93	-	Active	NO
4	U65990GJ1980PTC003888	Ananya Investments Private Limited	Director	15-05-98	15-05-98	-	Active	NO
5	U34100GJ1978PLC003127	Mahindra Gujarat Tractor Limited	Nominee director	18-12-99	18-12-99	30-10-07	Active	NO
6	L24230GJ1972PLC002126	Torrent Pharmaceuticals Limited	Director	23-01-03	23-01-03	-	Active	NO
7	U80302KA2005NPL036676	Center For Study of Science Technology and Policy	Director	25-08-05	25-08-05	28-08-08	Active	NO
8	U18101GJ2007PLC050217	Arvind Retail Limited	Director	24-09-10	31-10-09	-	Active	NO
9	U64201GJ1995PLC024598	Arvind Lifestyle Brands Limited	Director	24-09-10	31-10-09	-	Active	NO
10	U52609GJ2007PLC051974	Arvind Brands and Retail Limited	Director	23-09-11	22-02-11	-	Active	NO

Name :

Mr. Jayesh Kantilal Shah

Designation :

Director

Address :

26, Amaltas Bungalows, Vastrapur, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

25.05.1960

Date of Appointment :

31.10.2009

DIN No.:

00008349

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U30006GJ1985PLC008289	Syntel Telecom Limited	Director	22-11-93	22-11-93	01-04-10	Active	NO
2	U70102KA1994PTC015339	Firenze Propertiesandinvestments Private Limited	Director	03-08-94	03-08-94	-	Active	NO
3	U31100GJ1995PTC024599	Arya Omnitalk Wireless Solutions Private Limited	Director	01-08-96	01-08-96	01-06-11	Active	NO
4	L51505HP1993PLC031724	LS Industries Limited	Director	27-08-97	27-08-97	07-05-09	Active	NO
5	U65910GJ1981PLC004408	Asman Investments Limited	Director	21-03-01	21-03-01	01-04-10	Active	NO
6	L17119GJ1931PLC000093	Arvind Limited	Whole-time director	01-10-11	20-11-02	-	Active	NO
7	U72200GJ1988PLC010830	E-Infochips Limited	Director	03-12-04	03-12-04	-	Active	NO
8	U67120GJ1995PLC025303	Anagram Shares Registry Limited	Director	01-08-07	01-08-07	01-04-10	Active	NO
9	U66990GJ1995PLC025267	Edelweiss Comtrade Limited	Director	01-01-08	01-01-08	15-12-10	Active	NO
10	U65920MH1989PLC053909	Edel Finance Company Limited	Director	01-01-08	01-01-08	06-12-10	Active	NO
11	U67120GJ1994PLC022633	Edelweiss Stock Broking Limited	Director appointed in casual vacancy	21-01-08	21-01-08	29-12-10	Active	NO
12	U65910GJ1993PLC020228	Edelweiss Financial Advisors Limited	Director	29-09-08	19-02-08	15-02-11	Active	NO
13	U80212GJ2008PLC052901	Anagram Knowledge Academy Limited	Director	01-04-08	01-04-08	-	Active	NO
14	U29100GJ2008PLC053226	Arvind Accel Limited	Director	20-04-08	20-04-08	-	Active	NO
15	U45201GJ2008PLC055771	Arvind Infrastructure Limited	Director	27-01-09	27-01-09	-	Active	NO
16	U64120PN2003PTC018154	Arya Omnitalk Radio Trunking Services Private Limited	Director	05-09-09	05-09-09	-	Active	NO
17	U18101GJ2007PLC050217	Arvind Retail Limited	Director	24-09-10	31-10-09	-	Active	NO
18	U64201GJ1995PLC024598	Arvind Lifestyle Brands Limited	Director	24-09-10	31-10-09	-	Active	NO
19	U65923GJ2009PLC058506	Anagram I-Broking Limited	Director	06-11-09	06-11-09	01-04-10	Under Process of Striking off	NO
20	L17110GJ1986PLC008886	Arvind Products Limited	Director	25-09-10	25-01-10	-	Active	NO
21	U25119MH2010FTC200484	Bayer Malibu Polymers Private Limited	Director	26-02-10	26-02-10	-	Active	NO
22	L15140GJ1985PLC007845	Adi Finechem Limited	Director	30-08-10	01-04-10	-	Active	NO
23	U52609GJ2007PLC051974	Arvind Brands and Retail Limited	Director	23-09-11	22-02-11	-	Active	NO
24	U74140GJ2011PTC068131	Amplus Capital Advisors Private Limited	Director	08-12-11	08-12-11	-	Active	NO
25	U37200GJ2011PTC068339	Arvind Envisol Private Limited	Director	22-12-11	22-12-11	-	Active	NO

Name :

Mr. Munesh Khanna

Designation :

Director

Address :

Beachwood House, Jussawala Wadi, Juhu, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

12.05.1962

Date of Appointment :

31.10.2009

DIN No.:

00202521

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24110MH1993PLC070713	Indofil Industries Limited	Director	17-08-07	06-04-07	-	Active	NO
2	U51909MH2007PTC170716	Leading Age Trading Private Limited	Director	01-09-07	01-09-07	01-09-07	Active	NO
3	L17119GJ1931PLC000093	Arvind Limited	Director	31-07-08	27-10-07	-	Active	NO
4	U67120MH1995PTC084237	Caption Investments and Trading Company Private Limited	Director	01-11-07	01-11-07	-	Active	NO
5	U65910GJ1993PLC020228	Edelweiss Financial Advisors Limited	Director	29-09-08	19-02-08	25-05-09	Active	NO
6	U45400MH2007PTC175585	Youth Properties Private Limited	Director	15-03-08	15-03-08	-	Active	YES
7	U24130MH1994PLC142451	Garware Bestretch Limited	Additional director	17-11-08	17-11-08	25-03-09	Active	NO
8	U17113MH1975PLC018620	Garware Elastomerics Limited	Additional director	17-11-08	17-11-08	25-03-09	Active	NO
9	U65999MH2009PTC189564	Resonus Advisors Private Limited	Director	14-01-09	14-01-09	-	Active	NO
10	U18101GJ2007PLC050217	Arvind Retail Limited	Director	24-09-10	31-10-09	-	Active	NO
11	U64201GJ1995PLC024598	Arvind Lifestyle Brands Limited	Director	24-09-10	31-10-09	-	Active	NO
12	U65999MH2010FTC208856	Ashmore-Centrum India Opportunities Investment Advisers Private Limited	Director	11-10-10	11-10-10	-	Active	NO
13	U85191MH2011NPL216343	Solutions India For Social Development	Director	16-04-11	16-04-11	-	Active	NO

Name :

Mr. Suresh Jayaraman

Designation :

Director

Address :

S02, Magnolat No.170/5, Defence Colony, 5^th Main Indira Nagar, Bangalore – 560038, Karnataka, India

Date of Birth/Age :

25.05.1960

Date of Appointment :

28.10.2010

DIN No.:

03033110

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U64201GJ1995PLC024598	Arvind Lifestyle Brands Limited	Managing director	01-11-10	28-10-10	-	Active	NO
2	U18101GJ2007PLC050217	Arvind Retail Limited	Managing director	01-11-10	28-10-10	-	Active	NO
3	U52609GJ2007PLC051974	Arvind Brands and Retail Limited	Director	23-09-11	22-02-11	-	Active	NO

KEY EXECUTIVES

Name :	K E Venkatachalapathy
Designation :	Secretary
Address :	Flat No.S1, Gold Woods 135/2, Rahat Bagh, C V Raman Nagar, Post Bangalore – 560093, Karnataka, India
Date of Birth/Age :	29.10.1962
Date of Appointment :	01.06.2010
Pan No.:	ABMPV1986B
Name :	Mr. Ananth Krishnamurthy
Designation :	Assistant Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Lalbhai Realty Finance Private Limited, India	49994
Arvind Brands and Retail Limited, India	20000000
Jagdish Dalal	1
Ramnik V. Bhimani	1
Kajal shah	1
Devanshu Desai	1
Jayesh Thakkar	1
Prakash Makwana	1
TOTAL	20050000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business of retailing apparels.
Imports :
Products :	Garments
Countries :	Bangladesh China
Terms :
Selling :	L/C
Purchasing :	L/C

GENERAL INFORMATION

Customers :

Stores

No. of Employees :

1300 (Approximately)

Bankers :

State Bank of India, MID Corporate Group, Commercial Branch, 3^rd Floor, Paramsiddhi Complex, Near Mahakant Building, Ellis Bridge, Ahmedabad – 380006, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Bank
Cash Credit and Other Facilities	403.801	353.068
Term Loan	187.379	0.000
From Others	5.550	0.000
Total	596.730	353.068
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Group Company	250.000	212.747
From Ultimate Holding Company	64.669	0.000
Total	314.669	212.747

Banking Relations :	--
Auditors :
Name :	Sorab S. Engineer and Company Chartered Accountants
Address :	909, ATMA House, Opposite Reserve Bank of India, Ashram Road, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26584304
Fax No.:	91-79-26589710
E-Mail :	sseahm@hotmail.com
Website :	www.sorabsengineer.com
Pan No. :	AAAFS5191E
Holding Company :	Arvinf Brands and Retail Limited
Fellow Subsidiaries :	Arvind Lifestyle Brands Limited
Ultimate Holding Company :	Arvind Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs. 10/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20050000	Equity Shares	Rs. 10/- each	Rs. 200.500 Millions

Notes:

(a) Out of the above shares, 20,000,006 shares are held by Arvind Brands and Retail Limited, the holding company and its nominees (Previous year 20,050,000 share are held by Arvind Limited, the holding company and its nominees)

(b) Of the above shares, 20,000,000 Equity Shares of Rs. 10/- each were allotted as fully paid up pursuant to the Scheme of Arrangement to Arvind Limited, the ultimate holding company without payment being received in cash. (Previous year 20,000,000 Equity Shares)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		200.500	200.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		318.029	320.001	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		518.529	520.501	0.500
LOAN FUNDS
1] Secured Loans		596.730	353.068	0.000
2] Unsecured Loans		315.669	212.747	0.000
TOTAL BORROWING		912.399	565.815	0.000
DEFERRED TAX LIABILITIES		11.823	5.564	0.000
TOTAL		1442.751	1091.880	0.500
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1012.304	877.508	0.000
Capital work-in-progress		34.900	8.875	0.046
INVESTMENT		0.000	0.000	0.503
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1245.380	955.050	0.000
	Sundry Debtors	52.942	11.921	0.000
	Cash & Bank Balances	11.442	19.330	0.014
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	381.168	221.371	0.000
Total Current Assets		1690.932	1207.672	0.014
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	956.182	818.135	1.189
	Other Current Liabilities	332.122	177.762	0.000
	Provisions	8.081	6.278	0.000
Total Current Liabilities		1296.385	1002.175	1.189
Net Current Assets		394.547	205.497	(1.175)
MISCELLANEOUS EXPENSES		0.000	0.000	1.126
TOTAL		1441.751	1091.880	0.500

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3726.137	2813.414	0.000
		Other Income	21.223	21.484	0.000
		TOTAL (A)	3747.360	2834.898	0.000
Less	EXPENSES
		Cost of goods sold	2318.302	1744.753	0.000
		Employee cost	235.364	206.931	0.000
		Operating and administrative expenses	991.293	757.816	0.000
		TOTAL (B)	3544.959	2709.500	0.000
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		202.401	125.398	0.000
Less	FINANCIAL EXPENSES (D)		105.340	21.867	0.000
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		97.061	103.531	0.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		91.700	72.731	0.000
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		5.361	30.800	0.000
Less	TAX (H)		7.333	10.799	0.000
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(1.972)	20.001	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		20.001	0.000	0.000
	BALANCE CARRIED TO THE B/S		18.029	20.001	0.000
	Earnings /(Loss) Per Share (Rs.)
	Basic		(0.10)	1.00	0.00
	Diluted		(0.10)	1.00	0.00

Expected Sales(2011-2012): Rs.6000.000 Millions (Due to more marketing)

The above information has been parted by Mr. Ananth Krishnamurthy – Assistant Manager

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(0.05)	0.71	NA
Net Profit Margin (PBT/Sales)	(%)	0.14	1.09	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.20	1.48	NA
Return on Investment (ROI) (PBT/Networth)		0.01	0.06	NA
Debt Equity Ratio (Total Liability/Networth)		4.26	3.01	2.38
Current Ratio (Current Asset/Current Liability)		1.30	1.21	0.01

LOCAL AGENCY FURTHER INFORMATION

THE DETAILS OF SUNDRY CREDITORS:

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Other than micro enterprises and small enterprises	956.182	818.135	1.189
Total	956.182	818.135	1.189

Check list by Info Agents	Available in Reports ( Yes/No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitutions of the Firm	Yes
Premises Details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	--
No. of Employees	Yes
Name of person contacted	Yes
Designation of contact person	Yes
Turnover of Firm fort last three years	Yes
Profitability for last three years	No
Reasons For Variation<>20%	--
Estimation for coming financial year	Yes
Capital in Business	Yes
Details of Sister Concern	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	Yes
Export / Import Details (if Applicable)	Yes
Market Information	--
Litigations that the firm / Promoter involved in	--
Banking Details	Yes
Banking Facility Details	No
Conduct of the banking account	--
Buyer visit details	--
Financial, if provided	No
Incorporation details, if applicable	--
Last Account filed at ROC	--
Major shareholder , if available	--

COMPANY BACKGROUND:

Subject is engaged in the business of retailing Apparels. Subject is the pioneer of Apparel Value retailing business in India, under the umbrella brand "Megamart". Megamart today is the largest player in the Branded Apparel Value- Retailing concept. With more than 190 small format stores and four Large Format stores Megamart operates more than 6, 00,000 square feet of Retail space across India.

OPERATION

The company has posted a sales turnover of Rs.3726.137 millions during the year. The operating profit before interest and depreciation stands at Rs.202.401 millions.

CONTINGENT LIABILITIES:

As on 31.03.2011

(A) Claims against the Company not acknowledged as Debt Rs.200.000 millions

Form 8

Corporate identity number of the company	U18101GJ2007PLC050217
Name of the company	ARVIND RETAIL LIMITED
Address of the registered office or of the principal place of business in India of the company	Arvind Mills Premises, Naroda Road, Ahmedabad – 380025, Gujarat, India Email : rv.bhimani@arvind.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10190135
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	State Bank of India, MID Corporate Group, Commercial Branch, 3^rd Floor, Paramsiddhi Complex, Near Mahakant Building, Ellis Bridge, Ahmedabad – 380006, Gujarat, India Email : c.s@sbi.co.in
Nature of instrument creating charge	Joint deed of hypothecation dated 11th February 2011
Date of instrument Creating the charge	11.02.2011
Amount secured by the charge	Rs.650.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: SBI - Cash Credit - 5.00% above the base rate, presently at 12.50% p.a with monthly rest. The rate of interest is liable to change whenever there is a revision in base rate. BOB - 3.50% above BR Terms of Repayment: -- Margin: Working Capital SBI BOB Finished goods 30% 30% Receivables 40% 40% LC 15% -- Extent and Operation of the charge: As per BOB's CRA:ADV:CST I:17:502 dated 05.10.2010 and Joint Deed of Hypothecation Dated 11.02.2011
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First pari - passu charge on the entire stock of Raw Materials, Stocks in Process, Finished goods, Stores and Spares, goods in transit, receivables and other current assets of the Company First pari - pasu charge over entire fixed assets (except project assets) of the Company located at stores / offices and other places.
Date of instrument modifying the charge	29.09.2010
Particulars of the present modification	The charge is extended to cover additional loan as per BOB's letter No. CRA:ADV:CST I:17:502 dated 05.10.2010 and Joint Deed of Hypothecation Dated 11.02.2011

FIXED ASSETS

• Brand value
• Computer software
• Data processing equipments
• Electrical equipments
• Furniture and fixtures
• Leasehold improvement
• Office equipments
• Plant and machineries
• Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.65
UK Pound	1	Rs.77.80
Euro	1	Rs.65.05

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.